Credit Suisse sees share consolidation, then gains

SarahTurner

SYDNEY (MarketWatch) -- Credit Suisse global equity strategists Friday said that they believe equity markets will consolidate before making further gains. They raised their year-end S&P 500 target to 1,450 and are staying overweight on equities as they believe the asset class still offers relative value and a hedge against inflation. They are also said their profit models suggest 13% and 15% earnings per share growth in the U.S. and Europe, respectively. "Last time credit spreads, nominal gross domestic product and non-financial earnings per share were at current levels, equities were 10-15% higher," they said. Additionally, equities are still moderately under-owned by long-term investors, the strategists added.

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